The Government has announced a series of major planning reforms designed to dismantle barriers to growth, accelerate homebuilding, and unlock investment in clean energy and water security.
The measures, outlined as part of a new pro-growth package linked to the landmark Planning and Infrastructure Bill, promise to overhaul the planning system and “get Britain building”.
If approved, the proposals will give ministers new powers to prevent local councils from rejecting applications while they consider whether to use ‘call-in’ powers to approve major projects.
The Government said nearly 900 large housing schemes were blocked in the past year, and these reforms would help remove unnecessary delays.
New measures would also fast-track the development of reservoirs for the first time in more than 30 years, supporting future water security, and accelerate the delivery of onshore wind projects.
The changes could unlock up to 3GW of capacity and £2bn in additional investment for UK businesses, while streamlining Natural England’s role to focus on higher-priority cases and nature recovery initiatives.
Housing Secretary Steve Reed said: “Britain’s potential has been shackled by governments unwilling to overhaul the stubborn planning system that has erected barriers to building at every turn.
“It is simply not true that nature has to lose for economic growth to succeed. Sluggish planning has real world consequences.
“Every new house blocked deprives a family of a home. Every infrastructure project that gets delayed blocks someone from a much-needed job.
“This will now end. The changes we are making today will strengthen the seismic shift already underway through our landmark Bill.
“We will ‘Build, baby, build’ with 1.5 million new homes and communities that working people desperately want and need.”
Chancellor of the Exchequer Rachel Reeves added: “The outdated planning system has been gummed up by burdensome bureaucracy and held to ransom by blockers for too long.
“Our pro-growth planning bill shows we are serious about cutting red tape to get Britain building again, backing the builders not the blockers to speed up projects and show investors that we are a country that gets spades in the ground and our economy growing.”
The business community welcomed the announcement. John Foster, CBI chief policy and campaigns officer, said: “The CBI welcomes the latest amendments to the Planning and Infrastructure Bill as an important signal that the government wants to go further and faster in reforming our inefficient planning system. Action that cuts delays to planning processes and simplifies environmental approvals is critical to getting projects moving faster and unlocking the economic growth the country needs.”
Industry leaders also highlighted the importance of aligning planning reform with wider economic and workforce strategies.
Daniel Austin, CEO and co-founder at ASK Partners, said: “Any move to accelerate the UK’s planning system is long overdue, but the government must go further if it’s serious about unblocking housing delivery.
“Real estate development in London has been paralysed by red tape, unworkable affordability quotas, and soaring build costs that have rendered many schemes unviable. But planning reform alone won’t solve the crisis.
“The construction industry faces a chronic shortage of skilled labour, worsened by tighter immigration rules and new regulatory burdens.
“If Labour truly wants to deliver 1.5 million homes and drive economic growth, it must align planning reform with a coherent workforce and financing strategy.”
The Government’s analysis suggests that the measures could add up to £7.5bn to the economy over the next decade.
The Planning and Infrastructure Bill is expected to return to the House of Lords later this month for its report stage.
